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Express Tribune
7 days ago
- Business
- Express Tribune
NA approves Rs9.95tr in demands for grants
The National Assembly on Wednesday completed the approval process for demands for grants pertaining to ministries, divisions and various federal departments. In total, the lower house of parliament, which met under the chairmanship of Speaker Sardar Ayaz Sadiq, approved 136 demands for grants amounting to Rs9,951.22 billion for 33 federal ministries and divisions. Meanwhile, over 750 cut motions moved by the opposition were rejected by majority vote. Finance Minister Senator Muhammad Aurangzeb, while winding up the debate, said that independent data validated by global rating agencies and reputable surveys shows a significant rise in consumer confidence, reaching its highest level since 2022. He highlighted that Pakistan's macroeconomic stability was improving, with inflation declining, policy rates reduced, foreign exchange reserves increasing, and the national currency showing signs of stability. He emphasised that the recent boost in public confidence is not based on government statistics but on independent assessments. Aurangzeb stated that the country's tax-to-GDP ratio was projected to increase to 10.4 percent by the end of the current fiscal year, compared to 8.8 percent last year. He acknowledged that throughout the year, speculation about looming debt crises and repeated calls for "mini-budgets" were widespread, but said these forecasts have proven exaggerated, as recent indicators show a more resilient and adaptive economic environment. He further added that federal expenditure this year was expected to increase by less than 2 percent, a stark contrast to the 10 to 13 percent growth seen in past years. Key reasons for this include the decline in debt servicing costs due and lower policy rates. Commenting on the government's cost-cutting measures, he remarked, "Gone are the days when the prime minister used to come and go from the office in a helicopter. Expenditures have to be reduced from the top." The minister said that major reforms are currently underway at the Federal Board of Revenue (FBR) aimed at improving transparency and reducing human intervention in the tax collection process. Speaking on tax policy in the former FATA region, he clarified that the matter is not related to any particular province. He explained that income tax in the area remains exempted, while sales tax is being implemented gradually and progressively. "This is an ongoing process and all relevant stakeholders have been engaged. There should be no misconception that decisions were made without consultation," he stated. Senator Aurangzeb also spoke about the alignment of development priorities under the Public Sector Development Programme (PSDP). He said, the federal PSDP stands at Rs1 trillion, the combined Annual Development Plans (ADPs) across all provinces amount to more than Rs4 trillion, underscoring the importance of coordinated development planning at all levels of government. The assembly approved 14 demands for grants amounting to Rs 3.55 trillion for the Finance Division to meet various expenditures for the fiscal year ending June 30, 2026.
Business Recorder
11-06-2025
- Business
- Business Recorder
Rs1trn set aside for PSDP
ISLAMABAD: The budget 2025-26 allocated Rs1,000 billion for federal Public Sector Development Programme while provincial Annual Development Plans earmarked 2,869 billion. A separate allocation has been envisaged for state-owned entities, ie, Rs355 billion against Rs196.839 billion last fiscal year. The budgeted allocation for 2024-25 was Rs1,400 billion and the current year is lower allocation which indicates a decline of 28.5 percent next fiscal year. During the year the government reduced it to Rs1.1 trillion due to narrow fiscal space. The highest allocation under the PSDP has been earmarked for transport at Ra 225 billion with roads (Quetta-Karachi dualisation, Sukkur Hyderabad motorway, Eastbay Expressway accounting for a total cost of 501 billion rupees), water resources 184 billion rupees in spite of Pakistan being a water stressed country and climate allocated a mere 5.26 billion rupees though Pakistan is a major climate stressed country. Budget 2025-26: Pakistan targets 4.2% growth as Aurangzeb presents proposals 'for a competitive economy' Climate resilience projects include urban flood strategy and spatial planning 106 million rupees, green Pakistan 2.25 billion rupees, green skills and innovation 450 million rupees and biosafety and SDG reporting 300 million rupees. Three ongoing dams have been allocated the following amounts: Bhasha dam 60 billion rupees, Dasu 20 billion rupees, Mohmand 15 billion rupees while K-IV electric water supply has been budgeted 12 billion rupees and rural electrification and solarisation 10 billion rupees. Merged districts have been allocated a budget of 70 billion rupees and special areas (AJK and GB) 74.5 billion rupees. Health services which witnessed a major inflationary impact last fiscal year are budgeted at 24.7 billion rupees while IT and telecom, with potential to emerge as a major source of foreign exchange earnings budgeted at 23 billion rupees. The government has budgeted 61 billion rupees for Higher Education Commission, 4.7 billion rupees for NAVTTC Skill programme, 14 billion rupees for Pakistan Education Endowment, 5 billion rupees for cancer hospital Islamabad and 10 billion rupees for hepatitis and diabetes control. The PSDP handout states that Uraan Pakistan, a vision for the future, is our pledge, with no region ignored, no citizen forgotten, no potential wasted. Copyright Business Recorder, 2025
